Kraken parent Payward files for national trust company charter with OCC
Payward, the parent company of crypto exchange Kraken, announced on Friday that it had filed an application with the Office of the Comptroller of the Currency (OCC) for a national trust company charter. The proposed entity, Payward National Trust Company, would provide federally regulated digital asset custody services to institutional clients nationwide. This move is part of Payward's broader regulated banking strategy, complementing its existing Wyoming-chartered special purpose depository institution, Kraken Financial, which already holds a Federal Reserve master account. This filing comes amid a wave of similar approvals from the OCC, which has shown increased willingness to charter new banking entities in the digital asset space. Coinbase secured conditional approval in April, following approvals for Circle, Ripple, BitGo, Paxos Trust Company, and Fidelity Digital Assets in December. Comptroller of the Currency Jonathan V. Gould stated that new entrants into the federal banking sector benefit consumers and the economy by providing access to new products, services, and credit sources, while ensuring a dynamic and competitive banking system. For crypto wallet and key holders, this development signals growing institutional acceptance and regulatory clarity for digital asset custody. A federally regulated qualified custodian could offer enhanced security and trust for institutional clients, potentially leading to more mainstream adoption. However, individual users may not see immediate direct impacts but can expect improved infrastructure and services over time as the regulated ecosystem expands.
Key facts
- Payward filed for a national trust company charter with the OCC.
- The trust company would provide federally regulated custody for institutional clients.
- It complements Payward's Wyoming-chartered Kraken Financial with a Federal Reserve master account.
- OCC has approved similar charters for Coinbase, Circle, Ripple, BitGo, Paxos, and Fidelity Digital Assets.
- Kraken also recently agreed to acquire Reap Technologies for $600 million.